The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma")do NOT include

Question

Quizplus · Accepted Answer

The "trilemma" or "impossible trinity" in international economics states that a country cannot simultaneously maintain independent control of the money supply, fixed exchange rates, and free flow of capital. Independent control of fiscal policy is not part of this trilemma, meaning a country can control its fiscal policy while dealing with the constraints of the trilemma.

The Three Policies Which Cannot Be Maintained Simultaneously by a Nation